UK's Carillion to discuss rescue with creditors on January 10

LONDON (Reuters) - Struggling British building and services company Carillion, which is involved in Britain’s planned high-speed rail link HS2, said on Saturday it will meet creditors on Wednesday as it seeks a financial rescue plan.

 

A Carillion sign can be seen in Manchester, Britain July 13, 2017. REUTERS/Phil Noble

Carillion, a provider of infrastructure projects in several countries beyond Britain, has been fighting for its survival after costly contract delays and a downturn in new business.

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It is also under investigation by regulators over “the timeliness and content” of statements it made before it issued a profit warning in July, the first of three such warnings issued in quick succession.
“The group is currently finalising its business plan, which it intends to present to its financial creditors and certain other stakeholders on Jan. 10, in line with the previously announced timetable,” a company spokesman said.

 

Carillion was in talks to “reduce net debt and recapitalize and/or restructure the group’s balance sheet,” he said.
“Once finalised, the business plan will provide the basis for the agreement of a proposal to restore Carillion’s balance sheet,” the spokesman said.
Earlier on Saturday, Sky News said Carillion’s rescue plan would involve handing back loss-making contracts, revising the terms of others and possibly accepting government financial support if it cannot secure private funding.
That government support could be a loan on commercial terms, a deal to reprice some contracts, or to allow Carillion to hand back loss-making work to the government, Sky News said, quoting unidentified sources.
Analysts have estimated the company has debt including provisions, pensions and accounts payable of about 1.5 billion pounds ($2.04 billion) compared with its market capitalisation of about 70 million pounds, according to Thomson Reuters data.
In December, Carillion said discussions with stakeholders about its options to cut debt and avoid a breach of debt covenants were “progressing well”.

 

Sky News said the company faced a funding gap of hundreds of millions of pounds and the precise size of the shortfall depended on whether it was able to get out of loss-making contracts. The company’s lenders included Barclays, HSBC and Santander UK, it said.
Carillion, which operates in Canada and the Middle East as well as Britain and employs more than 30,000 people, last month brought forward the start date for new chief executive Andrew Davies to Jan. 22.

Writing by William Schomberg; Editing by Angus MacSwan and Adrian Croft

Our Standards:The Thomson Reuters Trust Principles.

China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit

BEIJING (Reuters) - FAW Car Co Ltd 000800.SZ said on Sunday it was taking a 10 percent stake in Chinese bicycle-sharing startup Mobike’s new car-sharing unit Mobike Chuxing Technology Co. 

The logo of Faw is seen on the car maker's booth at the 2016 Moscow International Auto Salon in Moscow, Russia, August 24, 2016. REUTERS/Maxim Shemetov

Mobike Chuxing was set up in December with registered capital of 20 million yuan (2.21 million pounds).

With the strategic investment, FAW will provide electric cars for the project.

Tencent Holdings Ltd438.2

0700.HKHONG KONG STOCK

Lidl UK's sales rose 16 percent in December

LONDON (Reuters) - Discount supermarket Lidl UK said on Wednesday it grew sales by 16 percent in the Christmas period as it set a record for the number of customers coming into its stores in December.

FILE PHOTO: A sign is seen outside a LIDL supermarket in Cricklewood, London January 21, 2009. REUTERS/Stephen Hird (BRITAIN)
The company, owned by Germany’s Schwarz Group, said the busiest day in the period was Dec. 22, while the week starting Dec. 18 was its strongest ever trading week.

Sales growth at Lidl and its fellow German discounter Aldi outpaced Britain’s “big four” supermarkets over the Christmas period, Kantar Worldpanel said on Tuesday, with each growing sales by 16.8 percent in the 12 weeks to Dec. 31.

Reporting by Paul Sandle; editing by Kate Holton

Our Standards:The Thomson Reuters Trust Principles.

HP recalls laptop batteries due to overheating issues

There have been eight reports of batteries melting or charring during the last two years.
Rob LeFebvre, @roblef
01.04.18 in Personal Computing

If you've got an HP notebook or mobile workstation computer, you'll want to check out the latest battery recall from the company. Lithium-ion batteries for affected HP laptops were shipped between December 2015 and December 2017. There have been eight reports of the battery packs overheating, melting or charring, three of which include reports of $4,500 in property damage and one report of a first degree burn to a hand.
You'll want to go to here to see if your model is one of the ones named in the recall. If so, you can enable a battery safety mode and get instructions on how to get your battery replaced by an authorized technician, since these batteries are not able to be replaced by consumers. According to the recall notice, affected models include HP ProBooks (64x G2 and G3 series, 65x G2 and G3 series), HPx360 310 G2, HP Envy m6, HP Pavilion x360, HP 11, HP ZBook (17 G3, 17 G4, and Studio G3) Mobile Workstations. In addition, batteries sold as replacement or accessories for the HP XBook Studio G4 mobile workstation are also named.
Update: HP has released a statement about the issue.
The quality and safety of all HP products is our top priority. We recently learned that batteries provided by one of our suppliers for certain notebook computers and mobile workstations present a potential safety concern. We are taking immediate action to address this issue including a voluntary recall and replacement of the batteries. This action pertains to 0.1 percent of the HP systems sold globally over the past two years.
Customers can visit HP's site to learn if their battery should be replaced. Impacted customers will have their batteries replaced free of charge and may continue safely using their device by placing the battery in Safety Mode and connecting to an external power source.
Source: Consumer Product Safety Comission, HP Battery Program 2018
In this article: batteries, battery, gear, HewlettPackard, hp, lithium-ion, personal computing, personalcomputing, productrecall, recall, safety

Firms may face upfront VAT after Brexit

The chair of the Treasury select committee has written to HMRC seeking clarification on what proposed new VAT rules will mean for companies.

Legislation that plans to change how imports from EU countries will be treated after Brexit has been drafted.
The Customs Bill will have its second reading in the House of Commons on Monday.
It could force tens of thousands of firms to pay VAT upfront in cash to HMRC.
Nicky Morgan, chair of the Treasury committee, said she would contact HMRC and will propose that MPs investigate the matter.
As Brexit comes closer, "we are beginning to see the reality of how it will bite", she said.

• Countdown to Brexit: UK imports and exports in six charts

Under existing rules, goods imported from the EU are referred to as "acquisitions" for tax purposes.
No VAT is paid until the products have been sold to the final customer and paid for.
But unless the UK remains in the Customs Union, goods from the EU will have to be treated like all other imports after Brexit and will attract VAT by the 15th day of the following month.

Image copyrightPA

Image captionNicky Morgan chairs the Treasury select committee

The British Retail Consortium said it was concerned about the government's lack of strategy about VAT.
Helen Dickinson, its chief executive, said: "It's ridiculous to assume that it would be easy to bring forward the timings on such significant amounts of cash.
"To plan ahead, retailers need to know what their liability on tax will be, and what measures are going to be taken to avoid this hit to cash flow with new costs on importing goods from Europe and higher potential pressure on prices for ordinary shoppers."
She added: "Resolving this uncertainty can be achieved by securing a deal between the UK and EU on VAT and through policy measures adopted by HMRC like self-assessment."
The Treasury acknowledged in the Budget in November that businesses benefit from postponed accounting for VAT when importing goods from the EU.
"The government recognises the importance of such arrangements to business, due to the cash-flow advantage they provide.
"The government will take this into account when considering potential changes following EU exit and will look at options to mitigate any cash-flow impacts for businesses," the Budget statement said.
The Budget also stated that ministers aimed to keep tax arrangements "as close as possible to what they are now" after Brexit.

Sharp slowdown in house price growth in 2017, Halifax says

House prices grew much more slowly in 2017 than in the previous year, the UK's largest mortgage lender has reported.

The Halifax said prices rose by 2.7% in 2017 - compared with a 6.5% increase in 2016. On a calendar year basis, that is the lowest rise since 2012.
The slowdown was driven by a squeeze on real wage growth and continuing uncertainty over the economy, it said.
At the end of the year the average house price across the UK was £225,021.

The Halifax research echoes last week's figures from the Nationwide, which suggested prices rose by 2.6% in 2017.
During the month of December, the Halifax said that prices actually fell by 0.6%, the first monthly decline since June last year.

• Biggest house price rises for 2017 revealed

• London's most affordable commuter towns

However, the Halifax still expects prices to continue rising in 2018.
"Nationally house prices in 2018 are likely to be supported by the ongoing shortage of properties for sale, low levels of housebuilding, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms," said Russell Galley, the managing director of Halifax Community Bank.
"Overall we expect annual price growth to continue in the range of 0-3% at the end 2018."
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said one reason that price growth was slowing was the gradual rise in mortgage rates.
The cost of average fixed-rate mortgages has risen by between 0.1% and 0.2% since September.
"Halifax's data suggest that the recent jump in new mortgage rates has poured cold water on a market that already was flagging," he said.

Apple investors urge action on 'smartphone addiction'

Big investors have called on Apple to develop software that limits how long children can use its smartphones.

The call came from two investment groups that hold $2bn (£1.48bn) of Apple stock between them.
A letter calling for the digital locks, signed by Jana Partners and a California teachers' pension fund, was sent to the iPhone maker this weekend.
The call for better controls was welcomed by academics studying youngsters' use of technology.

Design conflict

Jana Partners and the California State Teachers' Retirement System (CalSTRS) called on Apple to consider the impact excessive use of smartphones had on the mental health of young people.
In their letter, the two pointed to numerous studies which suggest excessive phone use can disrupt lessons, harm students' ability to concentrate on school work and deprive them of sleep.
The document also mentioned the impact that "heavy use" of social media can have on self-esteem and its possible influence on childhood depression.
The two are worried that if Apple does not address growing concerns about smartphone use, its stock market value and general reputation could be damaged.
According to a Reuters report, half of US teenagers believe they are addicted to their mobile phones and feel the need to respond immediately to messages.
The investment groups acknowledged that a variety of factors were at work in determining a young person's outlook and mental health. But, they added, it "would defy common sense" to argue that high levels of phone use were not having some impact.
The makers of such "powerful products" also needed to help parents ensure phones are being used optimally. They called on Apple to improve its current parental control systems which, they said, were a "binary, all or nothing approach".
The two groups said they would welcome the chance to talk about the issues they raised with Apple's board of directors.

Image copyrightGETTY IMAGES

Image captionChildren are encountering smartphones at earlier ages than ever, suggests research

Sonia Livingstone, professor of social psychology at the London School of Economics, said it was good to hear the call from the investors.
She added there needed to be one voice between device manufacturers, social media companies and internet service providers (ISPs) on the issue of smartphone use.
"For a long time the concern has been to not do anything that would impact a friction-free experience," Prof Livingstone told the BBC.
"Everyone would like to have a well balanced life, but the way that devices are designed currently causes a lot of conflict with parents."
She called on Apple and other device manufacturers to have all notifications on smartphones switched off by default and for the creation of occasional reminders that urged youngsters to take a break from their phone after long periods of use.
Prof Livingstone, who also runs a parenting blog, did question the use of the term "addiction" for those who spend a long time using a smartphone, however.
"Everyone will agree that there is excessive use and even obsession with smartphones, but I don't believe it's addiction," she said.
In a statement Apple said that it had "always looked out for kids."
Apple added: "We work hard to create powerful products that inspire, entertain, and educate children while also helping parents protect them online. We lead the industry by offering intuitive parental controls built right into the operating system.
With today's iOS devices, parents have the ability to control and restrict content including apps, movies, websites, songs and books, as well as cellular data, password settings and other features. Effectively anything a child could download or access online can be easily blocked or restricted by a parent."

from: bbc.com/

Airbus to increase aircraft production in China

Airbus has struck a deal to increase the number of planes it makes in China as part of a state visit by French President Emmanuel Macron.

The European giant aims to produce six of its A320 jets each month by 2020 at its final assembly plant near Beijing.
During his three-day visit, Mr Macron said both France and China must open up to doing business with each other.
At present, he said, France has "access to markets which is unbalanced [and] unsatisfying".
He told an audience of French and Chinese business leaders: "If we don't deal with this responsibly, the first natural reaction will be to close up on both sides."
As part of the agreement, Airbus said it will "enhance its industrial partnership in Tianjin" which is one of four global facilities that assemble the A320 family of planes, whose wings are made in the UK.
Airbus said it hopes to "strengthen the cooperation with regards to technical innovation, engineering capabilities and supply chain expansion".
Airbus currently produces four aircraft a month at the facility but said this will rise to five by 2019 before reaching a monthly turnout of six jets by early 2020.

Image copyrightGETTY IMAGES

Image captionFrench President Emmanuel Macron (L) and Chinese President Xi Jinping

The company is one of a number of businesses travelling with Mr Macron on his first state visit since being elected last May.
He has called on Europe to take a more coordinated approach to trade with China.
Mr Macron said that in the past, countries had come to China with different agendas and varying degrees of openness.
"We need a coordinated European approach... that gives China more visibility about our agenda," Mr Macron said.
"That's why France is in favour of defining strategic sectors where we want to protect investments... It's a question of sovereignty as you yourselves have understood very well."

Global growth back at pre-crisis levels, says World Bank

By Andrew Walker
BBC World Service economics correspondent

The World Bank says global economic growth is likely to speed up this year, after a stronger than expected 2017.

The bank's new forecast is that the world economy will expand by 3.1% this year before slowing slightly.
It will be the first time since the financial crisis that growth is operating at its full potential.
However, the report warns the upswing will be short term, with gains in improving living standards and reducing poverty levels at risk long term.
For the immediate future, the bank sees a reasonably upbeat prospect.
The bank's president Jim Yong Kim said: "The broad-based recovery in global growth is encouraging".
The forecast is better than what the bank was expecting in its previous assessment last June.
Among the large economies, the up-rating is especially marked for the eurozone, though the bank still thinks it will slow somewhat this year, but by less than its previous forecast.

Long-term growth

Emerging and developing economies will grow slightly faster than last year in this forecast.
However, the bank is worried about the longer term.
The issue is whether the world economy will have the capacity to maintain decent growth beyond the current upturn.
Its potential is growing more slowly than it used to, the bank says.
That's the result of years of lacklustre improvements in productivity - the amount each worker can produce - weak investment and an ageing workforce.
This slowdown in longer term prospects is widespread, the bank says. It affects countries that account for about two thirds of global economic activity.
The fact that in the bank's view the economy is close to operating at full capacity means that there's little scope to stimulate further growth with the standard policy tools that work by boosting demand for goods and services - interest rate or tax cuts or increased government spending.

Image copyrightGETTY IMAGES

Image captionChina's economy is expected to continue slowing

It says government should promote reforms to improve education and health services and infrastructure - such as roads ports, electricity supplies and telecommunications networks.
A healthier and better educated workforce is likely to be more productive, and better infrastructure makes it easier for business to be more productive too.
The weaker growth of the capacity of the economy is an increasingly persistent theme in the analysis of official economic agencies such as the World Bank and the International Monetary Fund
There are some marked variations in the forecasts between different regions. Africa and India are seen as likely to pick up a bit of speed this year.
China's slowdown, which began at the start of the decade, is predicted to continue, though with expected growth of 6.4% it's still strong.

UK manufacturing output at its highest for 10 years

Image copyrightGETTY IMAGES

UK manufacturing output is expanding at its fastest rate since early 2008 after recording a seventh consecutive month of growth in November.

Renewable energy projects, boats, aeroplanes and cars for export helped make output 3.9% higher in the three months to November than in 2016.
Official figures also show industrial output rose by 0.4% in November.
Construction output in the three months to November fell by 2%, compared with the previous three months.
That was the industry's biggest quarterly fall since August 2012, with the only bright spot for the sector being a 1.2% increase in new housing.

For the month of November, total production was estimated to have increased by 0.4% compared with the previous month, with the biggest contribution coming from energy supply.
This increased by 3.2%, mainly because the temperature was warmer than average in October, but colder than average in November.
Economic growth had slowed in the first nine months of 2017 with higher inflation caused by the fall in sterling after the Brexit referendum, although the UK economy did grow by 0.4% in the three months to September.
While the manufacturing figures are good, it is important to note that the sector only makes up roughly 10% of the economy.

---

Analysis: Kamal Ahmed, BBC economics editor:

British manufacturing is riding high on two big trends - a weaker currency and global growth.
Sterling's fall in value following the Brexit referendum has made UK exports more competitive.
And for the first time since the financial crisis, the three main engines of global growth - the USA, China and Europe - are performing strongly at the same time.
That has led to car exports, for example, rising rapidly - contributing to a narrowing of the trade deficit with the rest of the world.
That's the difference in value between what we import and what we export.
Domestically, the economic picture is more subdued, with growth still sluggish.
The weak construction figures are testament to that.
But, helped by that positive world outlook, Britain's manufacturing sector has not seen such quarterly buoyancy since April 2008.
And it is enjoying its strongest run of growth since 1997.

---

Lee Hopley, chief economist at manufacturers' organisation EEF, said: "UK manufacturers were, in the main, in good shape as 2017 came to a close, with the majority of sub-sectors enjoying growth.
"Manufacturers' expectations for the year ahead point to output and export growth being maintained through this year on the back of continuing support from a burgeoning global economy.
"This, together with an ongoing commitment from government to deliver on its industrial strategy, will be crucial in helping to propel the sector forward," she said.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The downturn in construction activity has been driven by new work in the private commercial sector, which was 5.4% lower in the three months to November than in the previous three months.
"Looking ahead, Brexit uncertainty is likely to continue to hit commercial projects, while the planned 4.5% decline in public sector investment in 2018/19 will additionally dampen the sector."

From : bbc.com

garment inspection service

Sunchine Inspection as a qualified inspection/sourcing/consulting company with offices in China mainland but also in Europe serve more than 1200 regular clients in various fields from all the Continents in the World .

Our hundreds fully qualified and accredited inspectors present in more than 50 cities in China, India,Malaysia,Vietnam,Turkey and ect are ready to provide the most professional inspection service for you!

Why get a quality control inspection?

• ensure the quantity produced (finished and packed) matches with the quantity ordered
• ensure visual appearance (color, finish) matches with product ordered
• ensure product specifications (measurements, material, functions) comply with the order
• verify packaging, labeling, instructions and markings comply with mandatory standards

Sunchine can help you verify the factory before you place an order and help you check quality before you release the last payment! With sunchine inspection,your business is safe,your money is safe!

What kind of inspection is best for your product?

• Components and raw material: Initial Production Check (IPC)
• Materials in process: During Production Inspection (DPI/DUPRO)
• Finished products: Pre-shipment Inspction (PSI)
• Supplies in storage: Container Loading Check (CLC)

1.  Pre-Shipment Inspection (PSI): An Inspection to guarantee the conformity of production to your specifications.PSI is performed when 100% of the production is finished and at least 80% of final product is packed.
2.   Production Monitoring (PM): Constant oversight in your factory with daily reports on quality and production status to identify, fix problems quickly and implement corrective actions in real-time.
3.   During Production Check (DUPRO):Control and recommendations for production processes and  capacity.  If the defects are found, the supplier has more time to correct or replace, so it could help the importer to avoid the problem of delay of delivery;
4.   Initial Production Check (IPC): Inspection of machinery and materials to be used for your order prior to production.Allowing implementing corrective actions before mass production is launched.Avoiding misinterpretations and misunderstandings.
5.   Container Loading Check (CLC):Sunchine inspection service makes sure the final details of your product and actual ordered quantity are correct and are securely loaded onto your container before signing off and settling final payment.
6.   Factory Inspections: To verify the comprehensive capacity of enterprises, such as production capacity, manufacturing process,technical capacity, quality management system and export experience etc according to ISO 9000 standard.
7.   Lab Testing: For Chemical.Textile&Leather,Metal,Mechanical & Electric,Cosmetic,food,etc.

What is a Factory Audit?

The objective of a Factory Audit is to ensure that the factory you choose is capable of producing your goods to your required specifications and within your given timeframe.The Factory Audit can cover issues such as:

• Is your supplier 'ISO 9001 certified' by a reputable certification body?
• Has the supplier implemented Quality Management System (QMS) standards to manage its key business processes?
• The existence and reliability of the factory (monthly production capabilities, the type of machinery used, the main products produced, and in-house/outsourced operations)
• Whether the premises and factory capacities correlate with your order (assessing production facilities, the quality control system  for incoming goods inspection, in-process controls and final online inspections); how is packaging material handled; how is non-conforming material handled; how are communication, document control & workflow; and complaints management managed?
• The training and experience of the workforce as well as the working conditions

Advantages

• Review your potential and existing suppliers business and production processes.
• Choose a supplier that is right for your order

What is an Initial Production Inspection?

• An Initial Production Inspection (IPI) is conducted at the very beginning of production, ideally after the vendor verification process (factory and/or social audit) has been completed.
• The objective of an Initial Production Inspection, or Pre Production Inspection (PPI), is to identify defective materials or components prior to the production process, thereby minimizing the risk of non-conformities and allowing for timely corrections where necessary. It can also identify if your vendor has correctly understood your order, avoiding miscommunication and ensuring that any deviations from the customer’s specifications are addressed early.

Advantages

• Ensure your requirements are met
• Inspect the quality of your components
• Preview the production process
• Detect and fix problems early
• Avoid wasting time
• Avoid additional costs

What is a During Production Inspection?

• The During Production Inspection (DUPRO or DPI), or In-line Product Inspection (IPI), checks semi-finished or finished goods part-way through the production process. Generally, this takes place when between 40% of your order has been produced and 20% export-packed.
• Doing so improves your control over production and allows for timely correction of defects and improvements to quality.

Advantages

• Verify your order is on schedule
• Ensure your products comply with the Golden Sample
• Make adjustments early in the production cycle

What is a Pre-shipment Inspection?

• The Final Random Inspection (FRI), or Pre Shipment Inspection (PSI), checks finished products when at least 80% of your order has been produced and export-packed. Samples are selected at random, according to AQL sampling standards and procedures.
• The Final Random Inspection ensures that the production complies with your specifications and/or the terms of your purchase order or letter of credit.

Advantages

• Verify your goods before they are shipped.
• Approve final payment in confidence
• Refuse the order if it does not meet your requirements

 

What is a Container Loading check?

• Container Loading Supervision (CLC) checks that your order is both complete and securely loaded into its container before shipment. This inspection ensures that the goods delivered by the factory are compliant with your requirements in terms of quantity, assortment, and packaging.
• A container loading inspection also ensures that the export cartons are securely loaded into the container, and that the container is in good condition (clean, dry, damage and odor free).

Advantages

• Ensure that your whole production is shipped
• Get your goods loaded with care
• Check the condition of your containers
• Verify the correct quantity has been loaded

-After the control, we'll send you one very detailed Inspection report with lots of photos and description to show you the real quality of your product and also the found defects and comments by our inspector within 24h!
-Our inspection is based on AQL system very strictly. Our clients are satisfied with our high quality services. We hope also to become your reliable quality partner in China!

Why choose us?

• Professional in business consulting, quality management and inspection services.we can advise you regarding suppliers' selection, help you to make the factory audit and assessment and provide third party inspection services all along the production process.
• Chinese/France Management team with an extensive experience in International Trade Consulting and in Quality Management in France and in China.
• Extensive QC experience and strong detection capability to provide the buyer with the most reliable product quality guarantee. Our inspectors are trained to detect products containing non-standard or non-compliant components.
• We respect the fact to be impartial, fair and honest. Inspection independent from the manufacturer. Sunchine Inspection guarantees independence, fairness and trustworthiness for whole inspection procedure. We are responsible for our clients only.
• Our inspectors are our full time employees and all all have a relevant expertise in the sector of products they inspect ,well-qualified and expert in the field of products they inspect and test.
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• Let us be your eyes and ears in factory!  http://www.sunchineinspection.com/

Huawei's US smartphone deal collapses

Chinese telecommunications giant Huawei says it has not been able to strike a deal to sell its new smartphone via a US carrier.

It was widely reported to have been in talks to release its flagship Mate 10 Pro device with AT&T.
But in a letter seen by Reuters, politicians scuppered the deal citing security concerns.
The snub would be the latest example of a Chinese firm struggling to do business in the US.

Last week the US blocked the $1.2bn (£880m) sale of money transfer firm Moneygram to China's Ant Financial, the digital payments arm of Alibaba.
It was the highest profile Chinese deal to be rejected by Washington since Donald Trump came to power.

'Unique challenges'

Huawei's chief executive officer Richard Yu told an audience at the CES tech fair in Las Vegas that plans to tie up with a US carrier "unfortunately" had not come to fruition.
He did not comment on why a deal was not forthcoming, but said it was "a big loss for consumers, because they don't have the best choice for devices," Techcrunch reported.
The Mate 10 Pro - Huawei's main competition against Apple's iPhone and Samsung's high-end handsets - will still be on sale in the US via sites such as Amazon.
But deals with carriers are important in the US because the majority of smartphones are purchased through carriers.

"The US market presents unique challenges for Huawei, and while the Huawei Mate 10 Pro will not be sold by US carriers, we remain committed to this market now and in the future," Huawei said.
According to Reuters, AT&T was pressured to pull out of the deal after 18 members of the US Senate and House intelligence committees signed a letter to regulators expressing concerns about Chinese companies getting involved in US telecoms.
The letter notes worries over "Chinese espionage in general, and Huawei's role in that espionage in particular".
In 2012, a US congressional panel said Chinese telecom firms Huawei and ZTE should be barred from any mergers and acquisitions because the two firms posed a security threat to the US.
Huawei is the world's number three smartphone brand behind Apple and Samsung.

from: bbc.com

UK boating industry buoyed by weak pound

Sunseeker 76Image copyrightMIKE JONES
The UK's boat and yacht industry has seen revenues surge to their highest level since the financial crisis after the weaker pound helped drive up sales.

Sales rose by 3.4% to £3.1bn in the year to April 2017, according to a report by lobby group British Marine.

It said that the depreciation of the pound since the EU referendum had boosted the sector by making products cheaper for international buyers.

Overseas sales for UK marine manufacturers rose by 4.7% last year.

It's the sixth consecutive year of growth for the industry, British Marine said.

"These impressive figures demonstrate how the industry has successfully cashed in on the pound's devaluation since the Brexit referendum in 2016," said Howard Pridding, chief executive of British Marine.

Staycation boost
Revenues last reached £3.1bn in 2008-09 as recession gripped the world's major economies.

The fall in the value of the pound has also helped the domestic market as holiday-makers decided to stay in the UK.

Examining the trends over the second half of last year British Marine said 60% of the industry's tourism specialists reported an increase in sales over the summer.

Mr Pridding said: "As the pound has dipped, many Brits have rekindled their love for barges, yachting, watersports holidays and canal cruises in and around the UK."

The figures were released as part of the opening of the five-day London Boat Show which runs until 14 January.

From： bbc.com

CES 2018: Kodak soars on KodakCoin and Bitcoin mining plans

By Chris Foxx & Leo Kelion
Technology reporters

Shares in photo firm Eastman Kodak soared nearly 120% after it revealed plans to mint its own crypto-currency, the KodakCoin.

The US firm said it was teaming up with London-based Wenn Media Group to carry out the initial coin offering (ICO).
It is part of a blockchain-based initiative to help photographers control their image rights.
Kodak also detailed plans to install rows of Bitcoin mining rigs at its headquarters in Rochester, New York.
Details of this second scheme - which is being branded the Kodak KashMiner - were outlined at the CES tech show in Las Vegas.
Customers will pay up-front to rent mining capacity.
Kodak is the latest in a series of companies to see its value jump after revealing plans for blockchain-related activity.
"This is a phenomenon we saw back during the dot com days in the late 1990s where traditional companies would mention some kind of internet strategy and their stock price would jump up," commented Garrick Hileman from the University of Cambridge.
"When you see stock prices moving like this it does appear to be troubling - it's hard to say if there's a bubble but it certainly is indicative of a frothy investment market."

Coin creation

Kodak developed a digital camera in 1975, but decided not to commercialise the technology at the time, and its hesitation to leave behind its film heritage is thought by some to have contributed to it filing for bankruptcy protection years later in 2012.

Since that collapse, Kodak has licensed its brand to a variety of manufacturers, with the mark appearing on batteries, printers, drones, tablet computers and digital cameras.
The KashMiner operation will be run by Spotlite, a licensee that had previously teamed up with Kodak to use its brand to market LED lights.
More from CES:

• Samsung launches giant modular TV
• Disobedient robot derails LG's event
• Hands-on with HTC's untethered VR headset
• Short story dispenser spits out tales

Mining involves carrying out processor-intensive tasks to solve complicated mathematical problems in order to verify crypto-currency transactions.
Any Bitcoins generated by Kodak KashMiner will be shared between the customer and the business.
Each of the mining rig boxes - which include computer processors and fans to keep them cool - will use about the same amount of electricity as running a hairdryer around the clock.
But the scheme will be able to take advantage of Kodak's on-site power generating plant, which has had spare capacity since Kodak's heyday.

The company says it can power each rig for four cents per kilowatt hour, which is significantly cheaper than running a rig at home.
At Bitcoin's current value, an up-front investment of $4,000 (£2,954) for 24 months of mining could earn a profit of $500 a month, Spotlite's Halston Mikail told the BBC.
But anybody hoping to join the gamble would have to wait, as capacity is already sold out, Mr Mikail added.
"At this time we have 80 miners, and we expect another 300 to arrive shortly. There is a big pile-up of demand," he said.
Bitcoin is notoriously volatile and some analysts fear its value could crash, resulting in a loss for those who had paid up-front for mining capacity.
But Mr Mikail said the rigs could be put to work on other tasks if Bitcoin faltered.
"Bitcoin could be a bubble. But the blockchain industry is not a bubble," he said.
"It's a solid platform built on mathematics and it will survive."

Kodak currency

Kodak's other initiative, the KodakCoin, is being created as part of an effort to build a global ledger of picture rights ownership that photographers can add their work to.
Associated KodakOne software will be used to crawl the web and find pictures that have been used without permission.
The company said it would then "manage the licensing process," so the photographer can be paid, in KodakCoin.
"Kodak has always sought to democratise photography and make licensing fair to artists," said Kodak chief executive Jeff Clarke.
"These technologies give the photography community an innovative and easy way to do just that."
The company's shares traded more than 130% above their opening price after the announcement before closing the day 119.4% higher.
But one expert had doubts.
"Storing the information in a blockchain doesn't protect your copyright any more than copyright law already does," commented David Gerard, author of Attack of the 50ft Blockchain.
"Notice how they're marketing it: they state a problem, then say the blockchain can solve it. But there's no mechanism by which the blockchain could do that.
"This doesn't do anything that signing up for Shutterstock or Getty Images wouldn't."
Even so, some think Kodak will not be the last household name to associate itself with an ICO.
"I expect we are going to see more major brands releasing their own tokens and currencies to support various products and services," commented Mr Hileman.
"It's something many big companies are thinking very hard about."

Toyota and Mazda pick Alabama for $1.6bn US investment - reports

Japanese auto giants Toyota and Mazda have picked Alabama to build their new $1.6bn (£1.2bn) US factory, according to several reports.

The firms revealed last year that they planned a US joint venture, with production scheduled to begin in 2021.

At the time, President Donald Trump said the decision was "a great investment" in US manufacturing.

The choice for the factory location had reportedly been narrowed down to either Alabama or North Carolina.

One US media outlet reported that North Carolina missed out because it did not offer the supply-chain logistics the two firms required.

Reality Check: Was Trump right about Japanese cars in US?

Tariff threat
The factory is expected to eventually produce 300,000 vehicles a year and employ about 4,000 people.

When contacted by the BBC, Toyota refused to confirm that Alabama had been selected, saying an announcement would be made "in early 2018".

However US media was widely reporting a formal announcement would be made on Wednesday.

The auto industry is one area where President Trump has been pressuring overseas companies to do even more manufacturing in the US.

Last year he said Toyota would face hefty tariffs on cars built in Mexico for the US market if they were made south of the border.

Research conducted by the BBC in November last year found that approximately 53% of cars sold in the US by the top six Japanese carmakers were made there. The rest were made in Japan, Mexico, Canada, and elsewhere.

From: bbc.com

Oil prices rise to hit four-year high of $70 a barrel

The price of oil has hit $70 a barrel for the first time since December 2014.

Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40% of the world's output, said it would continue to limit supplies.

The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists.

However, the AA said that drivers would benefit if supermarkets resumed their petrol price war.

Suhail al-Mazrouei, the UAE oil minister and Opec president, said it was committed to limiting output until the end of the year.

Last year, Opec and other nations including Russia said they would extend a deal to cut production to help support oil prices that had fallen below $50 a barrel when the agreement was struck in 2016.

Thursday's rise was also bolstered by a surprise fall in US oil stockpiles.

Oil price
The US Energy Information Administration on said crude inventories fell by almost five million barrels to 419.5 million barrels in the week to 5 January. US production also fell by 290,000 barrels per day to 9.5 million.

US oil also rose 1.5% to $64.51 a barrel.

The RAC said that rising oil prices were likely to have "a knock-on effect in the forecourt due to the increase causing the wholesale price of fuel to rise".

The price of unleaded petrol has already risen by nearly 5p since November to 121.27p per litre, while diesel prices have jumped 3p to 123.97p over the same period.

It said that cost of filling an average 55-litre family car was now £66.69 for petrol and £68.18 for diesel.

An RAC spokesman said: "If oil stays at this level, pump price hikes will be almost inevitable.

"With households across the country still feeling the cost of Christmas this is not the start to 2018 anyone would have wanted. It could also negatively affect business and further fuel inflation."

But the AA said: "Oil at $70 a barrel has yet to threaten a pump price surge on UK forecourts."

An AA spokesman said petrol prices had risen in recent weeks after supermarkets put their fuel price war on hold.

According to data from the AA, supermarkets lowered petrol prices several times last year to a low of 111.8p a litre in July.

While the AA conceded that wholesale prices have risen, it added: "The current higher prices are more a reflection of reduced fuel price competition at supermarkets."

By December, petrol was an average of 117.6p a litre at supermarkets and 121.9p ea litre at other outlets.

Deutsche Bank to post third consecutive annual loss

Tom Sims 4 MIN READ

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) will post its third-consecutive annual loss in its 2017 results, defying its chief executive’s expectations of a swing to profit and highlighting the difficulty of overhauling Germany’s largest lender.

 

A red traffic light is photographed in front of the head quarters of Germany's largest business bank, Deutsche Bank, in Frankfurt, Germany, December 6, 2017. REUTERS/Kai Pfaffenbach

The bank warned on Friday that weak trading, low client activity and a 1.5 billion euro ($1.8 billion) negative impact from a tax overhaul in the United States would result in a “small” loss for the full year.
CEO John Cryan has cautioned that the bank’s turnaround would be a long, hard slog but said in July he expected a return to profit in 2017.

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The bank’s announcement took investors by surprise and its shares fell sharply, closing 5.2 percent down.
“The share price reaction speaks for itself,” said a trader in Frankfurt. “Investors are disappointed.”
In March, Deutsche announced an overhaul that included integrating its Postbank retail bank with its in-house consumer bank, as well as the partial sale of its asset management business.

 

Shareholders said another loss would add pressure on Cryan, who was appointed in 2015 to steer the bank’s return to profit.
“If the bank performs too poorly compared with its competitors, then one would need to start another debate about the strategy,” Ingo Speich, a fund manager at Union Investment, was quoted as saying by Handelsblatt newspaper.
Speich, whose fund holds Deutsche stock, said management had about two quarters to show they were delivering an improvement.
The company has struggled to keep revenue from shrinking and experienced a 10 percent drop in the third quarter. The bank had warned that the fourth quarter could be rough and confirmed that view on Friday.
“Trading conditions in the fourth quarter 2017 were characterised by low volatility in financial markets and low levels of client activity in key businesses,” Deutsche Bank said in its statement.
Revenue at Deutsche’s cash-generating bond-trading division was expected to drop 22 percent in the fourth quarter from a year ago, the bank said.

Deutsche Bank AG15.348

DBKGN.DEXETRA

--(--%)

• DBKGn.DE

The bank is due to report fourth-quarter and full-year earnings on Feb. 2. It posted a net loss of 1.4 billion euros in 2016 and 6.8 billion euros in 2015.
The company has been recovering from multiple legal battles, ranging from its role in the marketing of U.S. mortgage-backed securities to a so-called mirror trading scheme that could be used for money laundering.
Last year, a looming $14 billion fine from the U.S. Department of Justice had unsettled clients and investors and prompted talk of a government bailout.

 

The bank said the reduction in the U.S. corporate tax rate to 21 percent from 35 percent would translate into an average tax rate for the whole group at the lower end of a range between 30 percent and 35 percent.
The lower effective tax rate would require a revision to the valuation of deferred tax assets, causing the negative hit to Deutsche’s fourth-quarter earnings, it said, adding that it would not have any cash impact.
($1 = 0.8306 euros)

Reporting by Tom Sims; Additional reporting by Andrea Lentz and Andreas Cremer; Editing by David Goodman and Edmund Blair

Our Standards:The Thomson Reuters Trust Principles.

Deutsche Bank to take €1.5bn US tax hit

Deutsche Bank will take a €1.5bn (£1.3bn) charge following changes to the US tax code, meaning it will not make a profit for 2017.

The bank said its trading revenue in the fourth quarter also declined about 22% year-on-year, amid lower market volatility and less client activity.
Shares in Deutsche fell nearly 6% after the announcement.
The German lender also posted annual losses in 2016 and 2015.
Deutsche has grappled in previous years with hefty legal costs connected to money laundering charges, among other violations, but had hoped to turn a profit in 2017.
On Friday it said the tax changes would lead to a "small full-year after-tax loss".
Several large companies have announced one-time hits due to the changes to the US tax code that cut the corporate tax rate from 35% to 21%.
In the long run, corporations expect to benefit from lower rates.
But the switch has led many companies to revalue deferred tax assets, which are tied to deductions for past losses and can be used to reduce future tax payments.
As well as Deutsche, Morgan Stanley said it expected the changes in its deferred tax assets to lead to a $1.25bn hit.

from: bbc.com

Facebook plans major changes to news feed

By Chris Baraniuk
Technology reporter

Facebook is to change how its news feed works, making posts from businesses, brands and media less prominent.

Instead, content that sparks conversations among family and friends who use the site will be emphasised, explained chief executive Mark Zuckerberg on his page.
Organisations on Facebook may see the popularity of their posts decrease as a result, the firm acknowledged.
The changes will take effect over the coming weeks.
"We've gotten feedback from our community that public content - posts from businesses, brands and media - is crowding out the personal moments that lead us to connect more with each other," wrote Mr Zuckerberg.
He said that he and his team felt a responsibility to make sure Facebook was good for people's wellbeing.
If public content is to be promoted, it will now have to be seen to encourage community interaction - as happens within the tight-knit groups that discuss TV programmes and sports, he said.
Another example given by Facebook in a separate post was live video feeds, which tend to generate much discussion.
"By making these changes, I expect the time people spend on Facebook and some measures of engagement will go down," added Mr Zuckerberg.
"But I also expect the time you do spend on Facebook will be more valuable."

In a previous post, Mr Zuckerberg had vowed to "fix" Facebook in 2018, saying he wanted to ensure that users were protected from abuse and that time spent on the site would be time well spent.
He also pledged to defend Facebook from nation states.
Analysis has recently suggested that some actors, including Russia, have tried to manipulate content on the social network.

• Mark Zuckerberg vows to 'fix' Facebook
• Facebook - the secret election weapon

"It's definitely a significant change," said Laura Hazard Owen at Harvard University's Nieman Journalism Lab.
"It's going to affect publishers a lot, we're going to be seeing a lot less news organically pop up in our news feeds."
Ms Owen added, however, that Facebook had not been very clear about what sort of discussions the site's revamped algorithms would prioritise.
It might end up being "the most controversial stuff" that generates heated conversations, she suggested, or simply content pulled in from group pages where users engage with others on specific topics.

Powerful 'admission'

Given recent public scrutiny, the social network was currently "in the hot seat", said Gabriel Kahn from the University of Southern California Annenberg School for Communication and Journalism.
"Facebook is in the midst of all of these fires it's trying to put out, it's trying to reassert its warm and fuzzy brand value that it has always tried to put forth," he told the BBC.
Mr Kahn added the update from Mr Zuckerberg was a "clear admission" that Facebook wielded significant power over the health of society.
However, he argued that the new priorities could further distort views and the nature of conversations.
"There should be public debate about the values they're applying to that algorithm," he said.

By Dave Lee, North America technology correspondent

In many ways this is Facebook getting back to its roots, making your news feed more about what your friends are creating and thinking, rather than articles they have shared.
For the first time, Mark Zuckerberg is making a major decision that goes against one of his long-held beliefs: any change to the network must have the goal of improving engagement. This move, he concedes, will likely lead to people spending less time on the site.
But after a tough 2017, Mr Zuckerberg is perhaps learning now that in the wake of the fake news scandal, and a platform brimming with tedious clickbait, not all engagement is good engagement.
Faced with the enormous task of having to do more to moderate what's happening on his network, Mr Zuckerberg may have come to the conclusion that having a news free-for-all is becoming more trouble than it's worth.
For news organisations and publications, this might spell bad news: a lot of traffic comes from Facebook. With less prominence, expect some viral sites to very quickly go out of business.
The new change of course will cost Facebook money. Mr Zuckerberg warned investors at the end of last year that combating fake news would hurt the firm's bottom line. The question now is: by how much?

South Korea considers Bitcoin trading ban

South Korea is considering a law to ban cryptocurrencies such as Bitcoin being traded on local exchanges.

Justice Minister Park Sang-ki said virtual currencies were "great concerns" and that the ministry was preparing a bill to ban trading.

However, South Korea's presidential office said later that a ban had not yet been finalised and was one measure being considered.

The local Bitcoin price fell by a fifth after the justice minister's comments.

In South Korea it trades at about a 30% premium compared with other countries.

There is no one fixed price for Bitcoin as it is not regulated and is traded on dozens of exchanges worldwide.

According to Coindesk.com, the price of Bitcoin was about 8% lower at just under $13,800 on Thursday afternoon.

• Is Asia driving the Bitcoin craze?
• What is Bitcoin?
• Bitcoin - risky bubble or the future?
• Forget Bitcoin - now Dogecoin goes wild

South Korea has become a hotbed for cryptocurrency trading, accounting for about 20% of global Bitcoin transactions.

It has more than a dozen cryptocurrency exchanges, according to the Korea Blockchain Industry Association.

Several were raided this week in a probe into alleged tax evasion, including the country's second-largest virtual currency operator, Bithumb.

The government had already said in December that it would apply more scrutiny to the exchanges, including moves to curb anonymous trading.

Given the low levels of trading and relatively small number of people holding virtual currencies, wild price swings have become the norm, leading to an argument that paying too much attention to price rises and falls is futile.

Digital currencies such as Bitcoin have surged in value over the past year - driving a huge demand. That has led to concerns about gambling addiction as inexperienced investors try to ride the wave.

China launches first specialist insurance company on technology

(Xinhua)    08:47, January 10, 2018
China's insurance regulator has approved the launch of Taiping Technology Insurance, the country's first ever insurer to specialize in offering services to the technology sector.

China Insurance Regulatory Commission (CIRC) has issued the approval for China Taiping Insurance Group to launch the technology insurer, according to a CIRC statement.

Headquartered in Jiaxing, a city in east China's Zhejiang Province, the new company has a registered capital of 500 million yuan (more than 77 million US dollars).

The company will provide services related with scientific and technological businesses, such as corporate and household property insurance and engineering insurance.

The idea of establishing technology insurers was brought forward by the Ministry of Science and Technology and CIRC in 2006, aiming to provide an insurance mechanism for high-tech firms in their research and development, as well as transfer of technological achievements.

China’s foreign trade to exceed $4 trillion in 2017: industry insiders

(People's Daily Online)    13:52, January 10, 2018
China’s foreign trade is expected to exceed $4 trillion in 2017, and the foundation for a rise in exports is solid, said industry insiders, China Securities Journal reported on Jan 10.

The foreign trade volume will expand in the first three months of this year, driven by steady global economy recovery and continuous boost of the Belt and Road Initiative.

A survey conducted by a management firm in Shanghai has indicated that more than 70 percent of surveyed companies have reported more orders for goods at the beginning of this year compared to the same period last year.

More orders were registered in the electronics and auto industries. Most surveyed enterprises believe they will meet more opportunities in 2018 than 2017.

The China Import and Export Fair, regarded as the barometer of the country’s foreign trade, also shows signs of warming up.

According to statistics provided by the Ministry of Commerce, increases were witnessed in both the number of participating companies and deals made during the Fair held last autumn.

The recovery of foreign markets means rising demand for Chinese goods, some analysts explained.

The Ministry made promoting exports while releasing positive import policies a task to bolster foreign trade in 2018 at the recently held national economic work conference.

In addition, the recent announcement of cutting import tariffs has also sent a positive signal of expanding imports, some industry insiders said.

Lowering import tariffs means more flowers on the brocade, but the final result depends on whether China’s economy can grow steadily and whether that growth will have spillover effects, said Bai Ming, the deputy director of the Ministry of Commerce’s International Market Research Institute.

Economic institutions have predicted that China's economy will remain stable in 2018, and to maintain that trend, real efforts should be made, Bai said.

The first China International Import Expo, scheduled in November this year, will be an effort to boost foreign trade, Bai added.

China launches first specialist insurance company on technology

(Xinhua)    08:47, January 10, 2018
China's insurance regulator has approved the launch of Taiping Technology Insurance, the country's first ever insurer to specialize in offering services to the technology sector.

China Insurance Regulatory Commission (CIRC) has issued the approval for China Taiping Insurance Group to launch the technology insurer, according to a CIRC statement.

Headquartered in Jiaxing, a city in east China's Zhejiang Province, the new company has a registered capital of 500 million yuan (more than 77 million US dollars).

The company will provide services related with scientific and technological businesses, such as corporate and household property insurance and engineering insurance.

The idea of establishing technology insurers was brought forward by the Ministry of Science and Technology and CIRC in 2006, aiming to provide an insurance mechanism for high-tech firms in their research and development, as well as transfer of technological achievements.

China launches first specialist insurance company on technology

(Xinhua)    08:47, January 10, 2018
China's insurance regulator has approved the launch of Taiping Technology Insurance, the country's first ever insurer to specialize in offering services to the technology sector.

China Insurance Regulatory Commission (CIRC) has issued the approval for China Taiping Insurance Group to launch the technology insurer, according to a CIRC statement.

Headquartered in Jiaxing, a city in east China's Zhejiang Province, the new company has a registered capital of 500 million yuan (more than 77 million US dollars).

The company will provide services related with scientific and technological businesses, such as corporate and household property insurance and engineering insurance.

The idea of establishing technology insurers was brought forward by the Ministry of Science and Technology and CIRC in 2006, aiming to provide an insurance mechanism for high-tech firms in their research and development, as well as transfer of technological achievements.

China’s foreign trade to exceed $4 trillion in 2017: industry insiders

(People's Daily Online)    13:52, January 10, 2018
China’s foreign trade is expected to exceed $4 trillion in 2017, and the foundation for a rise in exports is solid, said industry insiders, China Securities Journal reported on Jan 10.

The foreign trade volume will expand in the first three months of this year, driven by steady global economy recovery and continuous boost of the Belt and Road Initiative.

A survey conducted by a management firm in Shanghai has indicated that more than 70 percent of surveyed companies have reported more orders for goods at the beginning of this year compared to the same period last year.

More orders were registered in the electronics and auto industries. Most surveyed enterprises believe they will meet more opportunities in 2018 than 2017.

The China Import and Export Fair, regarded as the barometer of the country’s foreign trade, also shows signs of warming up.

According to statistics provided by the Ministry of Commerce, increases were witnessed in both the number of participating companies and deals made during the Fair held last autumn.

The recovery of foreign markets means rising demand for Chinese goods, some analysts explained.

The Ministry made promoting exports while releasing positive import policies a task to bolster foreign trade in 2018 at the recently held national economic work conference.

In addition, the recent announcement of cutting import tariffs has also sent a positive signal of expanding imports, some industry insiders said.

Lowering import tariffs means more flowers on the brocade, but the final result depends on whether China’s economy can grow steadily and whether that growth will have spillover effects, said Bai Ming, the deputy director of the Ministry of Commerce’s International Market Research Institute.

Economic institutions have predicted that China's economy will remain stable in 2018, and to maintain that trend, real efforts should be made, Bai said.

The first China International Import Expo, scheduled in November this year, will be an effort to boost foreign trade, Bai added.

China's CPI up 1.8 pct in December

File photo: Local residents select vegetables at a supermarket in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region, Oct. 16, 2017. China's consumer price index (CPI) rose 1.6 percent year on year in September, the National Bureau of Statistics said Monday. (Xinhua/Li Ran)

BEIJING, Jan. 10 (Xinhua) -- China's consumer price index (CPI), a main gauge of inflation, rose 1.8 percent year on year in December, slightly up from 1.7 percent for November, data showed Wednesday.

Previous forecasts from financial institutions fell within the 1.7 percent to 2.1 percent range.

The pickup was driven by a fast increase in non-food prices, which rose 2.4 percent year on year, the National Bureau of Statistics said on its website.

Prices for medical products and services rose 6.6 percent year on year and housing-related prices rose 2.8 percent, while educational, cultural and entertainment prices rose 2.1 percent, the bureau said.

Food prices dropped 0.4 percent year on year, contributing to a 0.08-percentage-point drop in the overall CPI increase.

On a month-on-month basis, the December CPI increased 0.3 percent from November, as food prices rose 1.1 percent from November.

In 2017, CPI rose 1.6 percent year on year, faster than 1.5 percent for the first 11 months of last year but slower than the 2 percent for 2016.

The annual figure is well below the government's target to hold the CPI increase at around 3 percent.

China Galaxy Securities said that food prices in 2018 will hold steady while non-food prices, especially service prices, will go up.

The annual CPI rise will reach 2 percent this year, the brokerage firm said.

Source: Xinhua| 2018-01-10 11:42:23|Editor: Yamei